Although many people may not realize it, the Affordable Care Act contains a tax that will be levied on health insurance companies starting next year. The Health Insurance Tax, or HIT, would affect small businesses and the self-employed.
The Tic Toc Trophy Shop has been in Akron (Indiana) for 50 years, and I have owned it for the past 33. I used to provide health insurance to my employees, but with rising premiums, I am no longer able to do so. With the HIT set to go into effect in just a few short months, the possibility of me ever being able to provide health insurance to my employees is very slim. In a small business, keeping up with rising costs is always a struggle, and the cost associated with the HIT ($55 per year, per covered employee) would likely have to be passed down to employees. This would only create further economic hardship in an already difficult economy.
Occasionally, my business sponsors local sports teams, but the more we struggle to keep up with costs, the less we’re able to contribute to our local community. This tax is just one more nail in the coffin for small businesses in our country, and we need Congress to pass the Jobs and Premium Protection Act, which would effectively repeal the HIT.